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Private bank stocks decline

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Capital Market
Last Updated : Oct 09 2015 | 12:01 AM IST

Index heavyweights ITC, HDFC, L&T and Reliance Industries (RIL) led losses for key benchmark indices. At 12:20 IST, the barometer index, the S&P BSE Sensex, was off 214.48 points or 0.79% at 26,821.37. The 50-unit CNX Nifty was off 58.20 points or 0.71% at 8,119.20. The Sensex continued to hover below the psychological 27,000 mark after falling below that level earlier during the trading session. Decline in Asian stocks weighed on sentiment on the domestic bourses.

The market breadth indicating the overall health of the market was negative. On BSE, 1,413 shares fell and 1,004 shares rose. A total of 94 shares were unchanged. The BSE Mid-Cap index was down 1.03%. The fall in the index was higher than Sensex's decline in percentage terms. The BSE Small-Cap index was down 0.47%. The fall in the index was lower than Sensex's decline in percentage terms.

In overseas markets, stocks in Hong Kong and Japan led decline in Asian markets after weak Japanese machinery orders data for August and weak export data out of Germany for the same month. Stocks in mainland China surged, catching up to a rally in global equities as trading resumed after a week-long break. The Shanghai Composite was currently up 3.13%. Trading in US index futures indicated that the Dow Jones Industrial Average could slide 97 points at opening bell today, 8 October 2015.

Index heavyweight Reliance Industries (RIL) declined 1.08% to Rs 904. The stock hit high of Rs 915 and low of Rs 899.55 so far during the day.

Capital goods stocks dropped. BEML (down 0.01%), Bharat Electronics (down 0.71%), Havells India (down 1.14%), L&T (down 0.98%), Thermax (down 0.98%), and Siemens (down 1.91%) declined. Bharat Heavy Electricals (Bhel) rose 0.35%.

Shares of private sector banks declined. Axis Bank (down 2.34%), HDFC Bank (down 0.93%), ICICI Bank (down 1.27%), Kotak Mahindra Bank (down 0.45%), Federal Bank (down 0.31%), Yes Bank (down 1.44%), and IndusInd Bank (down 0.9%) edged lower.

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Shares of public sector banks rose. UCO Bank (up 1.16%), Syndicate Bank (up 2.39%), Bank of Baroda (up 0.91%), Punjab National Bank (up 0.47%), Allahabad Bank (up 0.45%), Bank of India (up 0.55%), Canara Bank (up 0.18%), and United Bank of India (up 0.66%) edged higher. State Bank of India (SBI) (down 0.08%) and Union Bank of India (down 0.32%) declined.

Corporation Bank gained 0.45%. The bank has reduced the base rate by 25 basis points from 9.9% to 9.65% with effect from 8 October 2015. The announcement was made after market hours yesterday, 7 October 2015.

A number of banks have cut their base rate after the Reserve Bank of India (RBI) cut its benchmark interest rate viz. the repo rate by 50 basis points after a monetary policy review late last month. The base rate is the minimum lending rate charged by a bank.

HCL Infosystems rose 6.28% after a firm run by a well known investor Radhakishan Damani bought 1.80% stake in the company yesterday, 7 October 2015, through bulk deals on BSE and NSE.

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First Published: Oct 08 2015 | 12:23 PM IST

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